Two Takes on the iPod Video

It was not much of a surprise when Apple launched its new video-playing iPod today. Even with the lack of suspense, early feedback from the analyst community has been very positive. Why? Because Apple understands that it is more than just the device. As Tim Bajarin posts at Technology Pundits, it is about creating "a total consumer eco-system for integrating images, music and video into a digital lifestyle."

Going beyond the features, attractive pricing and content deal with Disney, Bajarin notes that "with this new iPod music and video player and the iTunes store that now supports video downloads, Apple is actually re-writing the rules of media distribution." He concludes by stating:

The ramifications of this announcement for the PC and CE industries are very significant because Apple continues to show a level of leadership that the traditional PC and CE folks can only envy. These new products make it even harder for any of the PC or CE players to catch up with Apple if they continue to innovate and develop great products that really make it easy for any consumer to create, manage, distribute and consume any digital media that becomes important within their digital lifestyles.

In his regular "Switched On" column at Engadget, Ross Rubin focuses more on the content aspects of today's launch. He notes that "consumers have flocked to boxed DVD sets of classic –- and not so classic –- TV shows" and the:

iTunes store’s freshness in terms of current episodes enables the end to that seemingly endless quest for that show you forgot to record. Including two childrens’ series is also a good move in light of kids’ tolerance for TV repetition. For the networks and studios, of course, selling low-resolution episodes a la carte will be pure gravy, and music labels may be so thrilled about getting to monetize music videos that they may cut Apple some slack on the flat-rate pricing debate.

I think Apple is on to something by offering individual episodes of TV programs for a mere $1.99. That's pocket change for most folks, who won't think twice about digitally handing it over to Jobs & Co. Some might argue that with Tivos and digital video recorders, there really is no need for a service like this. However, the penetration of DVRs in the U.S. is rather low with somewhere around 6 million subscriptions altogether so for the approximately 30 million and growing iTunes users this is a nice option.

Where I potentially see this taking off is in the area of fringe programs that have grassroots appeal, but normally wouldn't see the light of day on satellite or cable TV. And fans would probably be willing to pay a premium too. I can't wait to see where Apple takes this and whether they eventually rebrand iTunes to reflect the addition of video...